What are the constraints

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
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What are the constraints

A soft drink manufacturing company has three factories-one in Orlando, one in Tampa, and one in Port St. Lucie that supply soft drink bottles to three warehouses located in the city of Miami. The associated
per-unit transportation cost between the factories and the warehouses is provided in the table below.
Factories/Warehouse (W)
Orlando
Tampa
Port St. Lucie
Transportation Costs ($)
Warehouse
W1
W2
W3
W1
7
7
5
The factory in Orlando has a capacity of 14,000 units.
The factory in Tampa has a capacity of 25,000 units.
The factory in Port St. Lucie has a capacity of 23,000 units.
The requirements of the warehouses are:
Requirement
(Bottles)
W2
4
18,000
19,000
22,000
6
5
W3
5
4
6
Determine how much of the company's production should be shipped from each factory to each warehouse in order to minimize the total transportation cost?
Transcribed Image Text:A soft drink manufacturing company has three factories-one in Orlando, one in Tampa, and one in Port St. Lucie that supply soft drink bottles to three warehouses located in the city of Miami. The associated per-unit transportation cost between the factories and the warehouses is provided in the table below. Factories/Warehouse (W) Orlando Tampa Port St. Lucie Transportation Costs ($) Warehouse W1 W2 W3 W1 7 7 5 The factory in Orlando has a capacity of 14,000 units. The factory in Tampa has a capacity of 25,000 units. The factory in Port St. Lucie has a capacity of 23,000 units. The requirements of the warehouses are: Requirement (Bottles) W2 4 18,000 19,000 22,000 6 5 W3 5 4 6 Determine how much of the company's production should be shipped from each factory to each warehouse in order to minimize the total transportation cost?
A
B
Transportation Costs ($)
W1
1
2 Factories/Warehouse (W)
3 Orlando
4 Tampa
5 Port St. Lucie
6 Warehouse Requirement (Bottles)
7
8 Model
9 Production to be shipped
10 Orlando
11 Tampa
12 Port St. Lucie
13
14
15 Constraints
16
17
18
W1
7
7
18000
OOO
0
0
0
W2
W2
C
4
W3
5
6
4
5
6
19000 22000
ܘ
ܘ
ܘ
D
W3
0
OOO
0
0
E
Capacity
14000
25000
23000
shipped
0
0
4
F
G
Transportation Costs ($)
W1
C11
C12
C13
Factories/Warehouse (W)
Outcome
Orlando
Tampa
Port St. Lucie
Warehouse Requirement (Bottles)
H
18000
W2
C21
C22
C23
C11*B10+C21*C10+C31*D10+c12*B11+c22*d11+c13*B12+c23*C12+c33*D12
19000
W3
C31
C32
C33
J
22000
Minimum
Transcribed Image Text:A B Transportation Costs ($) W1 1 2 Factories/Warehouse (W) 3 Orlando 4 Tampa 5 Port St. Lucie 6 Warehouse Requirement (Bottles) 7 8 Model 9 Production to be shipped 10 Orlando 11 Tampa 12 Port St. Lucie 13 14 15 Constraints 16 17 18 W1 7 7 18000 OOO 0 0 0 W2 W2 C 4 W3 5 6 4 5 6 19000 22000 ܘ ܘ ܘ D W3 0 OOO 0 0 E Capacity 14000 25000 23000 shipped 0 0 4 F G Transportation Costs ($) W1 C11 C12 C13 Factories/Warehouse (W) Outcome Orlando Tampa Port St. Lucie Warehouse Requirement (Bottles) H 18000 W2 C21 C22 C23 C11*B10+C21*C10+C31*D10+c12*B11+c22*d11+c13*B12+c23*C12+c33*D12 19000 W3 C31 C32 C33 J 22000 Minimum
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